U.S. Residential Solar PV Market Size, Share & Trends Analysis Report By Construction (Retrofit, New Construction), By State (California, Texas, New York, Arizona, New Jersey, Massachusetts), And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. residential solar PV market size was valued at USD 14.21 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.3% from 2023 to 2030. A rise in environmental concerns about increased carbon emissions caused by the use of conventional fuels for transportation and power generation has prompted the country to seek out cleaner and more efficient energy sources.The increasing demand for renewable-based clean power generation, combined with supportive government policies, incentives, and tax benefits to install solar PV systems, is expected to propel the market growth. The availability of net metering schemes for grid-connected systems as well as options to integrate battery storage systems for off-grid-connected systems has given the residential and commercial segments a boost.

The market in California is anticipated to witness substantial growth over the forecast period on account of the presence of strong federal schemes that include rising demand across the public and private sectors for green electricity, and solar investment tax credits. As per the Solar Energy Industries Association, in 2019, the United States solar industry generated an investment of USD 33 billion in private investment. The presence of favorable policies and regulations in California, such as net metering for solar PV, has been a major reason for its dominant position in the residential solar PV market in the United States.

Furthermore, the availability of various incentives for residential end-users to install solar PV systems has boosted market growth. The rapid reduction in fossil fuel reserves has increased the need for the utilization of renewable sources for power generation. Solar energy being one of the fastest-growing renewable sources due to the easy system installation also supports industry growth. Moreover, various advantages offered by floating panels over conventional plants are likely to propel industry growth.

Construction Insights

The retrofit solar panels segment led the market and accounted for 74.12% of the overall revenue share in 2022. Solar PV installation in existing residential properties undergoing renovation work is included in the retrofit segment. Existing homeowners benefit from solar PV installation in a variety of ways, including lower electricity bills and increased resale value. Furthermore, choosing solar PV allows residential users to have an uninterrupted power supply, reducing their reliance on energy providers. The availability of simple financing options is expected to increase the deployment of solar PV in the residential sector, particularly in the retrofit segment.

The provision of supportive policies and plans for solar PV systems, combined with appealing financing options, has fueled product installation in the residential sector in the U.S. However, the removal of ITC for the residential sector beginning in 2024 is expected to suppress market growth. With a steep decline in solar PV costs over the last decade, which is expected to continue over the forecast period; retrofit end-users will still opt for solar PV systems coupled with battery storage over the forecast period to achieve an uninterruptible power supply.

The new construction solar panels segment also held a considerable share in 2022. The installation of solar PV systems during the construction of new residential properties is included in this segment. The use of a solar PV system along with a utility power supply connection ensures that new residential properties have a continuous power supply. Furthermore, it helps reduce the building’s carbon footprint and may qualify it for green building certification. These factors cause selling costs to be higher in comparison to residential properties that do not have solar PV systems.

State Insights

In 2022, California dominated the market and accounted for the largest share of 30.88% of the overall revenue. The high share of the region can be attributed to various economic and environmental benefits, including several local investments to increase solar PV installations in the state. The region is estimated to expand further at the fastest growth rate maintaining its leading position throughout the forecast period.

Texas is expected to become a nationwide solar power generation leader, with over 4 GW of capacity projected to be installed over the next five years. Florida, Illinois, Nevada, Colorado, and other states make up the rest of the market in the United States. Illinois is a growing solar energy market that has benefited from a strong renewable portfolio standard that requires 25% of electricity generated to come from renewable sources by 2025. The state’s installed solar capacity is expected to increase further in the coming years.

Key Companies & Market Share Insights

The market is highly competitive with key participants involved in R&D and constant innovations done by the vendors have become one of the most important factors for companies to perform in this industry. Some of the prominent players in the U.S. residential solar PV market are:

• Tesla

• SunPower Corp.

• Sunrun

• Trinity Solar Inc.

• Sungevity

• Momentum Solar

• SPI Energy Co. Ltd.

• Ace Solar

• Sunlux

• Titan Solar Power

U.S. Residential Solar PV Market Report Scope

U.S. Residential Solar PV Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. residential solar PV market report based on construction and state:

• Construction Outlook (Capacity, MW, Revenue, USD Million, 2018 - 2030)

  • Retrofit

  • New Construction

• State Outlook (Capacity, MW, Revenue, USD Million, 2018 - 2030)

  • California

  • New York

  • Arizona

  • New Jersey

  • Massachusetts

  • Texas

  • Rest of U.S.